F88 has announced strong financial performance for the first quarter of 2025. The company’s total outstanding loan balance reached VND3.28 trillion (approximately $126.3 million), marking a 25% increase from the previous year. F88 also recorded revenue of VND820 billion ($31.6 million), a 21.5% year-on-year rise. Thanks to significant growth in loans, disbursements, and revenue, the company posted a pre-tax profit of VND132 billion ($5 million), up 204% compared to the same period in 2024.
Phung Anh Tuan, General Director of F88, credited the company’s success to its ongoing business strategy improvements and more efficient operations. “F88 has maintained its recovery momentum for the past five consecutive quarters. This confirms that we are on the right track in refining our business strategy and enhancing the sustainability of our operations,” Tuan said.
Sustainable Growth Focus
F88’s sustainable development strategy is central to its operations, particularly in providing financial services to underserved communities. The company is committed to helping individuals who lack access to traditional banking due to stricter requirements. In the first quarter of 2025, F88 saw an increase in new customers, with the number of returning customers rising by 48% compared to last year, indicating growing trust in the company.
Improving Asset Quality and Risk Management
F88 is also prioritizing risk management and improving asset quality. The company’s net write-off ratio, which reflects bad debt levels, dropped from 3.48% in Q1 2024 to 2.78% in Q1 2025, demonstrating improved credit risk control. The percentage of customers paying debts on time increased to 84.1%, up from 81.6% last year, highlighting a recovery in customers’ repayment capabilities.
Other key performance indicators showed strong results, with a return on equity (ROE) of 23.51%, more than double the previous year. Additionally, F88 maintained a liquidity safety ratio of over 100%, ensuring it can meet large disbursement needs without jeopardizing financial health. The company has also fulfilled all debt obligations and maintained a debt/equity ratio of 1.7x.
Credit Rating Upgrade and Future Growth Plans
FiinRatings upgraded F88’s credit rating outlook from ‘Stable’ to ‘Positive’ in April, citing improvements in asset quality. In line with its growth strategy, F88 issued a bond lot worth VND150 billion ($5.77 million) to support its business expansion.
The company’s first-quarter performance sets a solid foundation for continued success in 2025. F88 forecasts that its outstanding loans and disbursements could increase by 5-10% in Q2, with pre-tax profit expected to rise by 20% compared to Q1. FiinRatings projects that F88 will achieve an after-tax profit of VND500-700 billion ($19.5-27.3 million) in 2025-2026.
Strategic Partnerships Drive Expansion
F88 is optimistic about its future growth, particularly through strategic partnerships. In April, the company entered a comprehensive partnership with a major Vietnamese corporation, enabling it to expand its network of financial services through over 10,000 transaction points across the country, including remote areas with limited access to financial services.
Additionally, F88 is expanding its collaboration with MB Bank, offering new services at F88 branches. Customers will soon be able to open accounts and make deposits or withdrawals from MB Bank accounts at F88 locations, eliminating the need to visit bank branches. This initiative aims to enhance financial access and support the digital transformation of consumer finance in Vietnam.
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